Crediting period

The crediting period is the period of time a project can apply to claim ACCUs.

Under the landfill gas methods, projects that generate electricity have up to a 7-year (84 month) crediting period. The crediting period will end once the project enters its 85th calendar month of electricity generation.

Projects that do not generate electricity and only flare landfill gas, have a 12-year crediting period.

Existing projects transferring to the varied method can get an additional 5 years crediting period from the end of their current crediting period for flaring activities if they have not generated electricity for more than 84 months.

Projects can combine flaring and electricity generation activities with a maximum crediting period of 12 years, of which up to 7 years (84 months) may include electricity generation. As above, the crediting period will end if the project enters its 85th calendar month of electricity generation.

A restarting flaring project has a crediting period of 12 years, minus the length of its crediting period when it was previously a landfill gas project that generated electricity. For a project that generated electricity for 7 years and later re-entered the scheme as a restarting flaring project, this would result in a 5-year crediting period for the restarting flaring project.

Projects that remain on the original 2015 landfill gas method will continue to have the original 7-year crediting period for both flaring and electricity generating activities.

Relevant section of the Act:

• Part 5

Relevant section of the Method:

• Section 13A, Part 3

Eligibility requirements

There are general eligibility requirements in the Act, which include:

• newness
• additionality and funding from other government programs, and
• legal right.

Types of projects are eligible under this method include:

• a new project, which collects and combusts landfill gas by installing a gas collection system at a site where there has never been a gas collection system
  
• an upgrade project, which involves an existing system for which you can provide efficiency records covering at least four years before applying to run the project
  
• a recommencing project, which uses a new or existing gas collection system, and did not operate at the site after 24 April 2014 and for three years before applying to run the project
  
• a project transitioning from the Carbon Farming Initiative (using either of the two methodology determinations listed in Part 3 section 12 of the method)
  
• a restarting flaring project, which has previously been a landfill gas project that generated electricity during its crediting period or periods and are looking at switching back to flaring only. The project must not generate electricity after its declaration as a restarting flaring project.

Relevant section of the Act:

• Part 3

Relevant section of the Method:

• Part 2, Part 3

Project activities

A project involves collecting and combusting methane generated by decomposing biodegradable organic matter in the landfill, and converting it to carbon dioxide.

The methane must be combusted using a combustion device. This may be:

• a flare, boiler or internal combustion engine operated in accordance with the manufacturer’s instructions
  
• a device that combusts landfill gas with a destruction efficiency of at least 98 per cent, is operated in accordance with the manufacturer’s instructions and for which the combustion process can be monitored minute-by-minute.

Relevant sections of the Method:

• Section 5, Part 3

Exclusions

The method does not credit the destruction of emissions from carbon tax waste, which is waste deposited in landfill between 1 July 2012 and 30 June 2014. It only credits the destruction of emissions from legacy and non-legacy waste:

• Legacy waste is waste deposited before 1 July 2012, when the carbon pricing mechanism commenced.
• Non-legacy waste is waste deposited after 30 June 2014, when the carbon pricing mechanism ended.

Relevant section of the Method:

• Section 5

Abatement calculations

Abatement is calculated by working out the net abatement amount which is project abatement minus baseline abatement.

Project abatement is calculated as the amount of methane combusted from legacy and non-legacy waste, minus the amount of methane that would have been oxidised in the near-surface conditions of the landfill if it was not collected during the project. Part 4 Division 3 of the method deals with the calculations involved in determining project abatement.

Baseline abatement is the amount of methane combusted from legacy and non-legacy waste during the project, multiplied by the proportion of methane that would have been combusted in the absence of the project. Part 4 Division 4 of the method deals with calculating baseline abatement. Some of the major steps involved in calculating baseline abatement include determining:

• regulatory proportion
  
• default baseline proportion
  
• baseline proportion.
  

The regulatory proportion reflects the amount of methane that would have to be combusted to meet quantitative regulatory requirements. Schedule 1 in the method describes how to determine this proportion. It can be determined by:

• using regulatory guidelines for landfill in your state or territory
• for new projects – asking your state or territory environmental regulator
• for upgrade projects – asking your state or territory environmental regulator and calculating the collection efficiency of the existing landfill gas system
• engaging an independent expert.

The default proportion represents qualitative regulatory requirements, and is either 30 per cent or zero per cent. There are no conditions for applying the 30 per cent default, but the zero per cent default can only be applied if you can demonstrate that no qualitative requirements apply to the landfill. Examples of qualitative requirements include:

• install or develop a plan to install a landfill gas collection system
• control or reduce methane concentrations
• control, manage or limit odour
  
• capture landfill gas where practicable.

The baseline proportion depends on the type of project.

• For new and recommencing projects, it is the higher of the regulatory proportion or the default proportion.
• For upgrade projects, it is the higher of the regulatory proportion, the default proportion or the proportion of methane combusted during the reporting period that would have been combusted without the project.

Further guidance about how to determine project and baseline abatement can be found in the guide to the landfill gas method located under Tools and Resources.

The Emissions Reduction Fund (ERF) Landfill Gas Calculator (the Calculator), which is designed to assist in calculating project and baseline abatement, is being updated to accommodate the changes resulting from the 2021 LFG variation.

As specified in section 6 of the Method, where factors or parameters are defined by another document, projects must use the other document as in force at the end of the reporting period.

The NGER Measurement Determination was updated on 1 July 2020, in which factors and parameters used to calculate abatement have changed. Two versions of the Calculator have been developed to reflect the previous and current NGER Measurement Determinations:

• documentasset:Landfill gas calculator – Pre 1 July 2020 For use when the reporting period ends prior to 1 July 2020.
• documentasset:Landfill gas calculator – Post 1 July 2020 For use when the reporting period ends on or after 1 July 2020.
• documentasset:Landfill gas calculator instructions
  

Please note these calculators contain macros.

Relevant sections of the Method:

• Section 6, Part 4 and Schedule 1

Reporting requirements

In addition to the reporting requirements of the Act and the Rule, the method also sets out the following method-specific requirements for offset reports:

• Upgrade projects are only able to submit their first report for a reporting period that ends 12 months after the upgrade has taken place. This provides enough data to be able to compare the improvement in collection efficiency from the period prior to the upgrade.
• Other types of projects can submit their first and subsequent reports for a reporting period between one month to two years.

Relevant section of the Act:

• Part 6

Relevant section of the Rule:

• Part 6

Relevant sections of the Method:

• Section 11, Section 31

Monitoring requirements

In addition to the general monitoring requirements of the Act, projects must meet specific monitoring requirements in the method. Section 33 lists these requirements along with the process for monitoring and the standard to which it must adhere.

Relevant section of the Act:

• Part 17

Relevant section of the Method:

• Section 33

Record-keeping requirements

This method does not have any record-keeping requirements that are additional to the general record keeping requirements of the Act and the Rule.

Relevant section of the Act:

• Part 17

Relevant section of the Rule

• Part 17

Audits

Audits are an important requirement of the Emissions Reduction Fund and provide assurance over the integrity of Australian carbon credit units (ACCUs). All projects receive an audit schedule when the project is declared and must provide audit reports according to this schedule. A minimum of three audits will be scheduled and additional audits may be triggered. For more information on the audit requirements, see the Act, the Rule and the audit information on our website.

Audits during an extended crediting period

Once you submit an application to transfer your project, the Clean Energy Regulator will be in touch to discuss appropriate auditing during the extended crediting period.

Relevant section of the Act:

• Part 19

Relevant section of the Rule:

• Part 19

Specialist skills

Specialist skills may be required to carry out the project with the method. Examples of specialist skills include:

• registered professional engineer
• certified energy manager
  
• certified measurement and verification professional.

Relevant section of the Rule:

• Section 13(f)